Not Buying Starbucks

I’m not buying this mini-rally for Starbucks (SBUX). The last three earnings reports have been AWFUL. Earnings come out on April 29 and 15 cents a share is looking pretty high. They might hit it since an earnings warning should have come out by now.
Earnings misses aren’t like athletes having a bad night. You can’t just shake it off. One earnings miss usually leads to another. It’s because companies have big problems with their business models. Starbucks has started cutting back on expenses, but it’s far too early to say things have turned around.

Posted by on April 7th, 2009 at 2:39 pm


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.